Episode #
The Metric That’s More Important Than Customer Acquisition Costs
June 18, 2023

In episode #2486, Neil and Eric do a deep dive into the metric that’s more important than customer acquisition costs! This episode was inspired by a blog post by Elena Verna and in it you will hear why it is more important to focus on the lifetime value and the payback period of your customers than your customer acquisition costs. 


  • [00:00] Today’s topic: The Metric That’s More Important Than Customer Acquisition Costs.
  • [00:18] The importance of understanding your Customer Lifetime Value (LTV).
  • [00:47] The blog post by Elena Verna inspired today’s episode. 
  • [01:17] An example that highlights the problem with focusing only on customer acquisition (CAC).
  • [02:45] The benefits of looking at LTV per channel.  
  • [03:20] Why the length of your payback period matters more when your business is just starting out. 
  • [03:50] Understanding the paid marketing loop. 
  • [04:21] What does the payback period metric measure? 
  • [05:06] Key takeaways from today’s episode! 
  • [05:51] How losing money in the short term can benefit your business in the long run. 
  • [07:10] How to optimize your payback period.  
  • [09:01] That’s it for today! Don’t forget to rate, review, and subscribe!

Go to https://www.marketingschool.io to learn more!

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